AI-driven transformation is rapidly unfolding across every corner of society. As this wave, often called the “Fourth Industrial Revolution,” continues to accelerate, what will it take to steer it towards creating a better world? And what role should Japanese companies play in that process? Leading NEC, a company dedicated to delivering both security and innovation through technology, is President and CEO Takayuki Morita. Joining him is media artist Yoichi Ochiai, known for his creativity and visionary outlook on the future of society. The two leaders in the digital technology space sat down to share their perspectives on the theme: “Riding the Wave of the Fourth Industrial Revolution and Japan’s Digital Sovereignty.”

(This article is an edited version of their dialogue originally featured on NewsPicks' "WEEKLY OCHIAI." ※program only in Japanese. Honorifics have been omitted below for clarity.)

──The conversation began with a handshake and the words, “We last met at the Expo, right?” NEC is supporting the experience in Ochiai’s Signature Pavilion at the Expo, “null²,” where visitors can explore the concept of a future digital society, by providing technologies such as facial recognition.

Ochiai:
“In null², visitors scan their faces to upload their digital avatars, and the system verifies whether they are who they say they are. This is where NEC’s facial recognition technology comes into play. Of course, it is important to be able to prove that you are the verified individual. Equally important is that you can manage your own digital information yourself, in a self-sovereign manner.

“This is an experiment on a scale of hundreds of thousands of users, something unprecedented even globally. I hope that five years from now, when the world actually starts to look like this, people will remember and say, ‘Oh yeah, I experienced that at the Expo.’”

Morita:
“When it comes to the challenges surrounding digital sovereignty, that is, maintaining autonomy and leadership in the digital domain, I believe self-sovereign data management could be one of the solutions. It is an area where Japan could make a viable proposal to the world.

“For example, how we create mechanisms that allow personal data, like health information, to be used as a kind of public asset that can help save lives. The competitiveness of a nation will be shaped by how well it builds such frameworks. If things remain as they are, digital sovereignty will continue to be dependent on specific countries or corporations.”

──As the Fourth Industrial Revolution advances, the importance of securing digital sovereignty is growing rapidly. This means ensuring that critical digital technologies, such as AI, are not overly dependent on certain companies.

Morita:
“I believe national policies and cutting-edge technologies should not be mutually dependent. However, the two have become inseparable. It is a difficult era to navigate.”

Ochiai:
“There are surprisingly many areas, such as national defense and fundamental infrastructure systems, that must be domestically produced. There are also fields where, for security reasons, foreign cloud services or software simply cannot be used.”

Morita:
“What’s most frightening is AI. For personal use, it does not matter which AI you choose. But when handling sensitive government data, it must be a fully domestic system, trained entirely within the country. Otherwise, it cannot be trusted. We need to establish a global consensus on how we view digital sovereignty as soon as possible.

“It is essential that trusted and reliable AI becomes available as a public utility, much like water. If only certain countries are able to access specific AI tools, or if access is restricted to a select few nations, the future could take a dystopian turn.”

Ochiai:
“LLM (large language models) is a field with intense cost pressure. Once their performance reaches even one-tenth of the leading models, they become accessible to almost everyone. By the way, there is a question from the audience. They are asking whether NEC’s generative AI, cotomi, is aiming to surpass ChatGPT.”

Morita:
“That is not our goal. The key is matching the right AI to the right use case. In areas where external connections are prohibited and trust is critical, cotomi is appropriate. In other areas, ChatGPT is sufficient. If it is for programming, another specialized tool might be better.”

Ochiai:
“I feel the same. The tool depends entirely on the use case. For simple dialogue, anything works. For surveillance cameras, high-level language ability is unnecessary. There are so many different applications. That’s why I often say, I want people to understand the unique character of each LLM.”

──The burst of the economic bubble, Japan’s “IT defeat,” the persistent digital trade deficit—will history repeat itself in the coming AI industrial revolution?

Morita:
“At the Davos Conference in 2025, someone from Europe told me that Japan is the country most capable of driving innovation after the United States and China. They said it with a hint of envy. Japan has the potential to present a third option to the world, not only for itself. I want this country to become one that is home to companies capable of taking on that role.”

Ochiai:
“Rather than chasing after overseas trends, I believe it is important for Japan to pioneer things that the world genuinely wants, based on its own value system. Over the past decade, it has often felt as if we were simply trying to catch up with certain companies outside of Japan. Assuming that innovation only exists in the direction they are heading is a waste of opportunity.”

Morita:
“The major Japanese electronics firms once grouped together as ‘sogo denki’ (general electric manufacturers) are now each exploring different paths in their own ways. It is important that this kind of momentum spreads to academia and even the arts.

“Japan now occupies a unique position in the world. That position has become an advantage for its companies. After the so-called ‘lost 30 years,’ I believe Japan is finally starting to rise again.”

Ochiai:
“Since the emergence of generative AI, I feel the mood in Japan has begun to shift. With just ten or twenty people, it is now possible to build foundational software in fields that are not yet monopolized. The world is beginning to show clear signs of change.

“I have received a question asking what kind of breakthrough products NEC might bring to society in 2050.”

Morita:
“I expect the Fourth Industrial Revolution to continue until around 2050. NEC intends to become the company that protects its foundation, especially when it comes to digital infrastructure within Japan. To do that, I hope NEC itself can truly become an AI-native company.”

──At the end of the conversation, Ochiai invited Morita to share a message for the next generation. His response was particularly meaningful in an era where AI can easily provide us with countless insights.

Morita:
“No matter what you do, the most important thing is to think long and hard — and then do it. Breakthroughs only come from taking action. I want young people to sweat it out, think independently, and try things for themselves.”

Ochiai:
“There are a lot of people who think but never act. The phrase ‘give it a try’ carries real weight. If you don’t act, you leave no trace behind. It’s a powerful message.”

Related Links

Recommended Articles

NEC Stories Top